1 E-government: Using IT To Transform The Effectiveness And Efficiency Of Government June 15, 2005 Hon. Mark A. Forman Former U.S. Administrator, E-Government & Information Technology

2 2001: The President’s Management Agenda Initiated As A New Approach to Fixing Federal Government Management Few gains are possible without today’s IT An integrated approach to improving organization effectiveness (HR, FM, Sourcing, E-Government, Performance Metrics Used in Resource Decisions) The focus was making government more responsive to its customers – U.S. citizens

3 Leaders Realize that Policy without Execution is meaningless When Does IT Matter? Strategic Opportunity Road mapping e-Government/ e-Business Architecture Business Planning & Design High Quality Development & Deployment Practices (IT & Management of Change) Management Approach (Policy & Structure) Compelling Need for Change Role of IT Recognized by Leaders Executives Steer Change Governance Model

4 The Expanding E-Government Strategy The Vision: an order of magnitude improvement in the federal government’s value to the citizen; with decisions in minutes or hours, not weeks or months. E-Government Definition: the use of digital technologies to transform government operations in order to improve effectiveness, efficiency, and service delivery. The Principles: r Citizen-Centered, Results-Oriented, Market-based r Integral component of President’s Management Agenda r Simplify and Unify

5 Key Elements Of The IT Agenda During My Tenure Driving results & productivity growth: IT and management reform investments that create an order of magnitude improvement in value to the citizen, especially homeland security info sharing and knowledge flow IT Cost Controls: Consolidation of redundant and overlapping investments, Enterprise Licensing, Fixing cost overruns, Competing away excess IT Services charges E-Gov Act implementation: Government wide architecture governance, including web-based strategies for improving access to high quality information and services Cyber Security: Desktop, data, applications, networks, threat and vulnerability focused, business continuity, privacy protection IT workforce: Conduct training and recruitment to obtain project management skills, strategic CIO staff, and architects that have a Passion for Solutions

6 Key Results Customer Focus for the government Smarter Use of IT, and alignment to organization performance Consolidation of redundant and overlapping investments Better management of IT acquisitions (Enterprise Licensing, Fixing cost overruns, Competing away excess IT Services charges) Governance Structure and Processes Cyber Security

7 The Governance Process Leads to the Top: Agency Progress Is Graded Quarterly Agency E-government Progress − Modernization Blueprint -- Enterprise Architecture − Business Cases -- Capital Planning and Investment Control − IT Program Management − IT Security Agency is a Solution Partner in Multi-agency E-Government Initiatives (3 of 4 Citizen- centered groups) and

8 IT Reform Is About Modernization -- How Technology Is Used To Improve Government Primary issue is how fast it takes government to respond − To operate effectively and efficiently − To change with events, − Just like companies facing market pressures except people die when government moves too slowly ROIs should rarely be monetary for government, − Reflect policy objectives − Exceptions: IRS, administration, erroneous payments, etc No commercial organization has accomplished performance-based IT on magnitude of government (PART, CPIC and FEA)

9 The Chronic Problems of the 1990s: What We Found When We Took Office Paving Cow paths: Agencies automated management problems, instead of leveraging e-business to fix them Redundant Buying: Multiple agencies bought the same item, instead driving economies of scale or creating one-stop points of service Program Management: Few delivered on time, on budget Poor Modernization Blueprints: Few agencies had a business-driven enterprise architecture, a roadmap that showed what IT investments will be used to better improve performance Islands of Automation: − Citizens had to deal with multiple agencies (22,000 websites) to get service, instead of a single point of service website or call center − Agencies could not easily collaborate for key missions like Homeland Security Poor Cyber Security: IT security was seen as an IT or funding issue, instead of agency management issue

10 Lesson Learned: E-Government Strategy Must Focus on Unifying and Simplifying Government for Citizens Individuals: easy to find one-stop-shops for citizens -- creating single points of easy entry to access high quality government services. Businesses: reduce burden on businesses through use of Internet protocols, un-complicating interactions, and consolidating myriad redundant reporting requirements. Intergovernmental: make it easier for states and localities to meet reporting requirements, while enabling better performance measurement and results, especially for grants. Internal efficiency and effectiveness: reduce costs for federal government administration by using best practices in areas such as supply chain management, financial management, and knowledge management.

11 Government to Citizen Government to GovernmentInternal Effectiveness and Efficiency 1. USA Service 2. Free File 3. Online Access for Loans 4. Recreation One Stop 5. GovBenefits 1. e-Vital 2. e-Grants 3. Disaster Management 4. Geospatial Information One Stop 5. Project SAFECOM 1. e-Training 2. Recruitment One Stop 3. Enterprise HR Integration (includes e-Clearance) 4. e-Travel 5. Integrated Acquisition 6. e-Records Management 7. Payroll Processing Managing Partner OPM GSA NARA OPM Managing Partner SSA HHS FEMA DOI FEMA Managing Partner GSA TREAS DoEd DOI Labor Government to Business 1. Federal Asset Sales 2. Online Rulemaking Management 3. Expanded Electronic Tax Products 4. Consolidated Health Informatics 5. Business Compliance One Stop 6. International Trade Process Streamlining Managing Partner GSA EPA Treas HHS SBA DOC E-Authentication Lesson Learned: Citizen-centered Initiatives can work, but No Magic Formula Exists

12 Lesson Learned: A business-focused framework is Required for Cross-agency Improvements The Federal Enterprise Architecture (FEA) provided OMB and Federal agencies with a new way of describing, analyzing, and improving the Federal Government and its ability to serve the citizen The FEA enabled a means of developing options across the organizational obstacles that have historically hindered improvement without forcing reorganization The FEA is a business-focused approach and is not just for IT The FEA provided a common framework for improving a variety of key areas

13 The Federal Enterprise Architecture Provides the Framework for Transformation Business Reference Model (BRM) Lines of Business Agencies, Customers, Partners Service Component Reference Model (SRM) Capabilities and Functionality Services and Access Channels Technical Reference Model (TRM) IT Services Standards Data Reference Model (DRM) Business-focused data standardization Cross-Agency Information exchanges Business-Driven Approach Performance Reference Model (PRM) Government-wide Performance Measures & Outcomes Line of Business-Specific Performance Measures & Outcomes Federal Enterprise Architecture (FEA) Component-Based Architecture

14 Business Cases Drive Performance Improvement Agency’s IT Budget Submission Business Cases Clear Performance Gap IT will address? Should the Federal Government perform this function? Support the PMA and is it collaborative? Part of the Modernization Blueprint? Clear performance goals and measures tied to the business? 3 Viable Alternatives for closing the performance gap? Performance Based Acquisition and Contracts? Yes Strong Risk Management Plan? Project Management Plan with milestones? Addresses Security and Privacy? Life-Cycle Costs are well planned and appropriate? Yes $

15 The FEA and IT Capital Planning processes are tools for leveraging opportunities Through the Federal Enterprise Architecture, agencies characterize each of their IT investments by: − The business line the investment supports, − The performance the agency seeks to achieve, and − The components and supporting technology that comprise the investment OMB, Federal CIO Council, and agencies work together through the budget process to analyze the Federal IT portfolio to: − Improve mission achievement and customer service − Reduce costs through elimination of redundant IT investments − Create IT Portfolios around Lines of Business and customers − Share and re-use business and service components − Identify data sharing opportunities across agency- boundaries

President’s Budget Federal IT Investment Portfolio (dollars in billions) $4.7 (IT Security is included in the Mission Area and Office Auto/Infrastructure) $37 $21 $1 Mission Area Projects Office Automation /Infrastructure Enterprise ArchitectureIT Security 500+ projects have good business cases; over 750 projects ($21 Bn) “At- risk” requiring business case enhancements Better project management Integration with the Modernization Blueprint Satisfy the security criterion Link the investment to agency strategic goals and provide performance objectives Adequately address the risks

17 Progress As Of Late Summer 2003 Government wide 23 of 24 projects deployed key components; 6 new LOB Consolidation projects initiated #4 for G2B websites in January, #6 G2C IT governance: FEA, business case and A-11 Firstgov: 3 clicks to service, Harvard Innovation in Government Award; one of Yahoo’s 50 Most Incredibly Useful Websites; over 500% increase 37M users Office of Citizen Services Free Tax Filing for at least 60%, made easy with trust; 2.7 M filers Govbenefits.gov: (USA Today Hot Site) uncomplicates the welfare bureaucracy; find services in minutes versus days Regulations.gov: GAO says easy to find, read and comment on proposed regs vs. redundant agency sites(over 600,000 visits in first week) Golearn.gov: provides training for pennies per student to about 45,000 feds in first six months, over 45 M visitors Recreation.gov: v2 with clickable map E-Payroll: Consolidation to two winning teams from 22 providers E-Gov Act Signed; Administrator and Office fully operational Geodata.gov web accessible GIS & tool enables sharing and broad re-use of multi-billion investments in map tools and data Within Agencies VA, Energy, Education advanced to yellow in status; NSF to green All but 7 agencies making significant progress in addressing chronic problems and joining in citizen-centered E-gov Solutions Some Examples Navy e-business Office Energy, VA, and Justice have elevated CIO role, to drive change and results VA-DOD integrated patient medical records to provide seamless service to veterans Education performance based data management initiative to streamline data collection burdens and eliminate redundancy Energy Department terminates BMIS and creates I-MANAGE to integrate disparate HR, FM, procurement, facilities management, and budgeting systems GISRA baselines and Plans of Action and Milestones are used to define and track security improvements 50%-100% improvement in key areas of IT security; but considerable work remains

18 What Benefits Are we Seeing From E- Government Responsiveness and Service Orientation In Government to Citizen and Government to Business Interactions − Proof Point: The Internet is the predominant way Americans interact with their government − Proof Point: Decision making times reducing Widespread politician understanding of business process integration − Proof Point: common use of concepts such as simplifying government, performance measures, information sharing, government on-line, IT security − Proof Point: Increasing use of electronics in democratic institutions (esp. elections, policy and rule making, campaigns)

19 How And Why We Got Traction 1. Focus on results that matter to the customer, not technology -- E-Gov is about the business of government, not websites -- IT is enabler, but also a barrier to reform if not brought under control and focused from citizen (vs. agency perspective) 2. Management reform must go beyond IT, to address organization and resource management effectiveness -- Presidential Focus/Cabinet accountable for progress, graded by scorecard -- E-government reflects IT’s role in modernization, especially use of knowledgeable teams that replace outdated organization structures (incompetent hierarchies and islands of automation) 3. Key Elements of IT Management are world class -- Business cases and portfolios for treating IT as an investment -- Performance focused, business driven architecture that links IT components to results -- IT security

20 Example: One-Stop Portal

21 Example: Re-working the Delivery Channel

22 A Vision Of The Future: The Emerging Government Workers Will Rely on Resource Management Tools File Shares Tracking DB Document Library Team Web Site Partner Web Site 3 rd Party Web Sites Enterprise Data Integration Online Toolkit Portal Software with access to , Workflow tools, Security/Access/PKI, and Advanced KM tools Legacy LOB Apps Enterprise Apps (ERP, etc) Don’t worry. I have everything I need to help you. Help! I’m lost in a maze.

23 Today’s IT-related Challenges Redundant, customized applications drive spending beyond need, while limiting agility and ability to collaborate. Data and storage management are increasingly complicated and expensive, yet employees are awash in data, unable to share, and missing key information when needed. Compute resources are bought for each major application and are under-utilized. What is the real binding constraint on agility? Do infrastructure and other IT investments lock-out the ability to integrate information and business processes across businesses?

24 Commoditization of hardware (esp. Intel servers) Commoditization of business applications (App servers, ERP, SCM) Commoditization of OS and Runtime Components Service oriented architecture and widespread adoption of integrating standards (XML, SOAP, etc.) Breadth of connectivity options New Opportunities Arising for Collaboration, Cost Reduction, and Acceleration of Deployment

25 Business Applications Infrastructure Fact: A survey of nearly 1,000 CIOs shows that developing and managing a flexible and efficient infrastructure are their top technology priorities. Gartner: IT Infrastructure Matters: A real-time infrastructure and service-oriented application architecture are necessary for a business to remain competitive in the future. Operationally aware applications Virtualization, automation SODA Policy-based management Business, Applications and Infrastructure The Walls Are Coming Down

26 Implications for Private-Public Cooperation Government adoption and promotion of commercially used standards for data exchange, telecommunications, web services (government cant fall behind business or force business to lag) Sourcing Aligns with Speed to Deployment − Large internal development organizations are no longer sustainable − Applications are increasingly available as components − IT is becoming a service Government workforce skills shift to IT Strategy, Architecture, and project/change management

27 So, What are the Implications for Developing Countries 1.Focus On The Business Of Government Policy-related Measures Of Success, Plus Cycle Time Comprehensive (Process, Organization Structure, Skills And Capabilities, Management Of Change, And Technology) Greatest Opportunities May Be Inside The Bureaucracy 2.Leaders Are Required: Change Agents, Proponents, And Champions CIO Who Knows How To Position Initiatives And Coach 3.Infrastructure Aligned To Users: Identity Management Interaction On Customers Terms 4.Consolidation Or Creation Choices Should Be Made On Basis Of Enterprise Architecture Analysis 5.Governance In The Digital Age Is About Transparency And Service